agco corp (AGCO) Related Businessweek News

agco corp (AGCO) Details

AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. The company offers tractors, including high horsepower tractors that are used on larger farms primarily for row crop production; utility tractors for small- and medium-sized farms, as well as for specialty agricultural industries comprising dairy, livestock, orchards, and vineyards; compact tractors for small farms, specialty agricultural industries, landscaping, and residential uses; and combines used in harvesting grain crops, such as corn, wheat, soybean, and rice products. It also provides application equipment, including self-propelled three- and four-wheeled vehicles, and related equipment for use in the application of liquid and dry fertilizers and crop protection chemicals; and chemical sprayer equipment for use in planting crops and after crops emerge from the ground. In addition, the company offers hay tools and forage equipment comprising round and rectangular balers, self-propelled windrowers, disc mowers, spreaders, rakes, tedders, and mower conditioners for harvesting and packaging vegetative feeds used in the beef cattle, dairy, horse, and renewable fuel industries. Further, it provides implements, including disc harrows; leveling seed beds and mixing chemicals with the soils; heavy tillage to break up soil and mix crop residue into topsoil; field cultivators, which prepare smooth seed bed and destroy weeds; drills that are used for small grain seeding; and planters and loaders. Additionally, the company offers grain storage bins and related drying and handling equipment systems, as well as swine and poultry feed storage and delivery, ventilation, and watering systems; replacement parts; and produces diesel engines. It markets its products under the Challenger, Fendt, GSI, Massey Ferguson, and Valtra brands through a network of independent dealers and distributors. The company was founded in 1990 and is headquartered in Duluth, Georgia.

agco corp (AGCO) Key Developments

AGCO Corp. Announces Earnings Results for the Second Quarter of 2015; Revises Earnings Guidance for the Full Year 2015; Provides Earnings Guidance for the Third Quarter and Production Guidance for the Third Quarter and Full Year of 2015

Jul 28 15

AGCO Corp. announced earnings results for the second quarter of 2015. The company reported second quarter sales of $2.07 billion, down from $2.75 billion in the same period last year, hurt in part by unfavorable currency translation. Lower commodity prices and the expectation of reduced farm income also pressured global sales of farm equipment. Net income for the quarter came in at $107.1 million, versus $168.2 million last year. Diluted EPS were $1.22, versus $1.77 last year. Adjusted EPS was $1.25 per share. Profit dropped 49% to $135.5 million.
The company boosted its full-year 2015 earnings per share guidance increased to approximately $3.10 from approximately $3.00. The company’s net sales for 2015 are expected to range from $7.7 billion to $7.9 billion. For the full year of 2015, the company expects capex to be about flat compared to 2014 as it continues to make strategic investments to refresh and expand its product line, upgrade its system capabilities and improve its factory productivity. The company is targeting 2015 adjusted earnings per share of approximately $3.10. The company expects capital expenditures to be approximately $300 million and free cash flow to be approximately $300 million. The company also expects lower sales and production levels, as well as a weaker sales mix to negatively impact gross margins. These negative impacts are expected to be partially offset by the benefit of new products, its productivity and purchasing initiatives and its restructuring actions. The company is forecasting adjusted operating margins, ranging from 5.75% to 6% in 2015, and are targeting an effective tax rate of approximately 33% for 2015. The company expects gross and operating margins to be down from 2014 levels, reflecting the negative impact of lower sales volumes and a weaker sales mix.
In the third quarter of 2015, sales and earnings per share are expected to be significantly lower than reported for the third quarter of 2014 due to lower sales and production levels discussed earlier. Third quarter 2015 earnings per share are expected to be in the range of $0.50 to $0.55.
The company expects third quarter of 2015 production to be down 10% to 15%.
For the full year of 2015 production is expected to be lower by about 15% compared to 2014 levels. The 2015 production mix will be weaker than last year, with more significant reductions in higher horsepower equipment.

AGCO and Trimble announced that they are partnering to deliver wireless connectivity between AGCO's VarioDoc and AgCommand systems and the Trimble Connected Farm solution. The functionality is expected to be available to customers in North America in September and in Europe, Africa and the Middle East in the fourth quarter of 2015. The collaboration between Trimble and AGCO allows customers to access their AGCO machine data, via AGCO's telemetry product, AgCommand as well as their agronomic data through AGCO's VarioDoc task file management platform, from within the Connected Farm dashboard. This deeper integration of AGCO and Trimble technologies delivers a more streamlined approach to total farm management, simplifying the grower's ability to access and act on live machine and task data within a single, Web browser-based user interface.

AGCO Declares Quarterly Dividend, Payable on September 15, 2015

Jul 23 15

AGCO announced that its Board of Directors declared a regular quarterly dividend of $0.12 per common share to be paid on September 15, 2015 to all stockholders of record as of the close of business on August 14, 2015.

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